Samsung Leads Korean ICT Industry with AA ESG Rating
In 2023, Samsung Electronics showed its dedication to sustainability by achieving the MSCI ESG Rating AA.
This rating, based on the 2023 MSCI ESG Ratings by Morgan Stanley Capital International (MSCI), solidifies Samsung's position among global leaders in handling environmental, social, and governance (ESG) aspects.
Samsung saw a great improvement in its overall rating in 2023, climbing up by one notch from its consistent A rating since 2020. This progress mainly came from enhancements in its social and governance standings.
The MSCI ESG evaluation, done by MSCI, a subsidiary of Morgan Stanley, a renowned global investment bank, has been crucial in assessing ESG practices since 2009.
This evaluation holds considerable sway over global investors, offering a comprehensive review of ESG management across more than 8,500 listed companies worldwide, categorised into seven grades from AAA to CCC.
Samsung's progress in the rating last year reflects its extensive sustainability management endeavours. The company saw improvements in human capital development, controversial sourcing, and corporate governance.
Internally, Samsung rolled out initiatives to enhance its employees' work environment. These include the Free Agent (FA) initiative and Samsung Talent Exchange Program (STEP), providing employees with opportunities to explore diverse roles and gain cross-cultural work exposure between domestic and overseas offices.
Also, the company operates The University of Samsung Electronics (The UniverSE), offering integrated job and leadership training to support continuous development.
Regarding responsible mineral sourcing, Samsung conducts regular surveys and inspections of all suppliers and publishes a dedicated Responsible Minerals Report to address and prevent issues related to mineral procurement.
In their report, MSCI said, "The company’s robust mineral sourcing policy leads that of industry peers and extends beyond 3TG minerals. We note improvements in Samsung Electronics’ corporate governance practices."
Samsung integrates sustainability management criteria into its Environmental and Social categories when assessing organisational and executive performance. The Sustainability Committee of the Board of Directors, comprising entirely independent directors, plays a critical role in deliberating major ESG issues.
Source: Samsung Electronics